Athletes are now shifting their priorities to safe crypto endorsement in the wake of so many crypto-related scandals in the industry over the last few years.
With the crypto industry evolving, athletes and their management are now choosing brand reputation ahead of financial rewards from crypto companies.
Athletes are prioritizing safe crypto endorsement deals
The development comes amid recent scandals that have trailed exchanges in the past, with firms like FTX and Binance serving as examples.
The need for research is something that has become a topic worth discussing in the past few years. According to a 2024 report from CoinGecko, there was a 38% drop in crypto and sports sponsorships, dropping sharply from its peak in 2021. The report noted that one of the major reasons why there has been a drop is the state of the market.
In addition, athletes are demanding transparency from crypto firms, asking experts about everything they need to know in terms of legal and financial aspects before signing.
Digital assets impact endorsement deals
Some athletes are also choosing to take their payments in Bitcoin, seeing the asset as the best among all digital assets in the industry. They also see it as the perfect hedge against inflation, something financial experts would have told them time and again. Also, crypto sponsorships have evolved, with firms now adding fan engagements and other metrics across their social media into the contracts. This way, the athletes use their popularity to drive in the crowd, hoping that the firm does better and protects their integrity.
Reports also claim that this year has seen athletes seek evidence of firms following the needed regulatory guidelines and approvals before choosing to do business with them. In other cases, crypto firms that boast high-profile players provide the evidence others need to commit to them. For instance, Cristiano Ronaldo’s deal with Binance makes him a face of the brand across his social media, a move that could lure others to sign with the brand.
However, the challenges in the sector remain, with factors like the decline in the general crypto market affecting endorsement values. While some athletes prefer to be paid in cash, most exchanges would prefer to pay them in digital assets, and a drop in the price of the asset might affect the financial package of their endorsement deals. Meanwhile, the consensus remains that these firms will be looking to maintain user trust, which would translate into these athletes trusting their brand enough to commit to them.
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